Sovereign Metals (ASX:SVM) announced a major strategic development at its Kasiya Rutile-Graphite Project in Malawi, recovering a monazite concentrate rich in heavy rare earth elements from the rutile tailings stream.
Preliminary analysis indicates the Kasiya monazite contains exceptionally high levels of dysprosium-terbium and yttrium—critical elements for high-performance magnets, aerospace components, radar systems, and advanced defence technologies—significantly exceeding concentrations found in the world’s five largest REE producers.
The recovered concentrate averages 2.9% DyTb and 11.9% Yttrium, compared with just 0.4% and 1.7%, respectively, across major global operations.
By contrast, light rare earths such as neodymium-praseodymium remain at competitive levels, providing a unique mix of both light and heavy REEs.
The discovery represents a potential third revenue stream for Kasiya at near-zero incremental cost, with basic monazite concentrate currently valued at over US$8,500 per tonne delivered to China.
CEO Frank Eagar highlighted the strategic significance, noting that the recovery leverages existing rutile processing, requiring no complex additional infrastructure.
"These elements are precisely what nations need to secure critical mineral supply chains," he said, emphasising the global context of restricted heavy rare earth exports from China and heightened US and Japanese demand.
Sovereign plans further work to characterise monazite distribution, optimise recovery rates, and evaluate production potential.
At the time of reporting, Sovereign Metals' share price was $0.74.